Tips for getting mortgage ready!

by | May 27, 2019 | Mortgage Tips

Tips for Getting Mortgage Ready Donegal Wooden House & Thumbs Up

Tips for getting mortgage ready in Donegal, Ireland

Does your job provide you with a steady income?
Lenders are now looking closely at basic income; bonuses and overtime cannot be guaranteed to be taken into account when a lender is assessing your application. Make sure you have six months’ payslips, last year’s P60, and a salary cert completed by your employer (you can obtain a salary cert from your Broker or Lender).

How long have you been in permanent employment?
To obtain a mortgage you must have completed your probationary period and you should have at least six months (but preferably twelve months) in continuous employment. Do you plan on remaining in the same geographical area for a few years? If you are planning to move location within the next few years then perhaps purchasing is not ideal for you. House prices can rise as well as fall, as we’ve witnessed within the last number of years, and therefore if you are only purchasing for the short term, the risk of negative equity increases. Negative equity is when the outstanding mortgage on your home is more than the market value of your home. This means that even when you sell the house you will be left with debt.

Costs to consider
Do you have enough money set aside for the deposit, valuation, legal fees, etc, and for furnishing the property? You will be required to have between 10% and 20% of the purchase price of the property you intend to buy. You must show the lender evidence on paper – e.g. bank statements and gift confirmation (if any) of this deposit prior to the loan offer being issued. You should also consider the additional costs incurred in taking a mortgage, including the cost of the valuation and the cost of the solicitor. Shop around and find out what the average cost will be: it may vary a little due to location etc. You should never instruct a valuation until you get advice from your Mortgage Broker or Lender, as the valuer has to be on your lender’s valuer panel. Your Advisor will have details regarding this.

Showing regular savings
Lenders will require evidence of savings. Not only is this showing that you can live within your means, but it also demonstrates good financial planning and an ability to make repayments. Do you have 3 months or 3 weeks (if paid weekly) payslips, and current and saving bank statements?

Documentation needed
When you go to your Mortgage Broker or lender you should bring with you:

  • 3 months’ /weeks’ payslips
  • 6 months current account statements
  • 6 months saving bank account/Credit Union statements
  • 12 months’ loan account statements, for all existing loans including existing mortgages
  • Most recent P60.

Watch out for
Check that you have not had any unpaid direct debits or standing orders on your statements (these are sometimes denoted by referral fees). If there are unpaid direct debits or standing orders, check why this occurred and explain this to your Broker/Lender. Doing this can save a lot of time later in the process.

Show the ability to repay
Can you show the ability to repay i.e. paying rent? You can demonstrate an ability to repay by showing a strong savings history and strong payment history, i.e. the ability to pay a specified rent each month. It is important that the rent and savings transactions can be seen on your bank account statements. Loans which have recently been paid off are also useful to show the ability to repay. Do you live within your means, avoiding overdrafts? If you have an overdraft, check your six months’ bank statements and ensure you are not continually falling into the overdraft. If you do not have an overdraft, ensure that you have never overspent and initiated an unauthorised overdraft. Check also that you have not been “living from one pay cheque to another”. If this is the case, very strong savings records may help.

How is your credit history?
Don’t forget – if you are unsure about your credit history or if you missed payments in the past, log on to http://www.icb.ie/ and pay a small fee to get your credit report sent directly to you. You should show this to your Mortgage Broker/lender when applying for a loan.

If Unsure
Give us a call and we will assess your ability to get a mortgage and how much you can borrow. Call us today: Donegal Office 074 920 4287 or Email Us

Recommendation on Application for Mortgage

The best recommendation is by far to get guidance from a source not connected to the lenders. The ideal person to provide this advice is a financial broker/mortgage broker (like us). Many people talk themselves out of a mortgage by contacting lenders directly without first seeking guidance. I advise you to consult with me before making any mortgage financial choices since the material above is provided for informational purposes only and in no way represents financial advice. I advise using a comprehensive strategy when making financial plans, and I can assist you in implementing your ideas.

Make Sure to Find a Mortgage Broker Donegal Advice

When looking for a Mortgage in Letterkenny, Donegal, and Ireland, engaging a mortgage broker might provide a number of advantages and valuable benefits. Some benefits of hiring Brokers and Advisors are: offering access to a wide range of lenders, helping you save time and effort, providing expertise and knowledge, negotiating power, and personalized mortgage service. Make an appointment with a Pascal as you seek to find a mortgage in Donegal. Speaking with us right now. We are available to assist you with your Mortgage concerns and worries. Ask us questions about mortgages. We cover first-time buyers’ mortgages, remortgage or switcher mortgages, self-build mortgages, investor or property mortgages, and more. Contact findamortgage.ie in Letterkenny, Co Donegal, or by phone at 074 91 03938.The Central Bank of Ireland regulates Mortgage Broker Donegal Services companies in the country.

Warning: If you do not keep up your Mortgage Donegal repayments you may lose your home

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